Oil prices to normal about $55 a tub in 2017, Deloitte forecasts
Oil prices should normal around $55 US a tub in 2017 for West Texas Intermediate, that should be adequate for many slimmed-down Alberta producers to work profitably, according to a latest foresee from financial advisory organisation Deloitte.
“It’s significantly improved than what a normal was by final year, that is bringing some confidence into a sector,” said Andrew Botterill with Deloitte’s resource analysis and advisory group.
“Obviously, it isn’t during a turn that’s going to concede all producers to furnish all of their inventory,” Botterill added.
“But it positively is improved than we’ve seen for some time. And with reductions in handling costs that companies have satisfied in a final year or two, there are some-more plays that are going to be economic.”
The OPEC agreement to extent prolongation is one cause during play, though that alone isn’t expected to boost prices almost anytime soon, according to Deloitte’s outlook.
“It’s going to take some time for people to unequivocally see how many barrels are going to leave a complement with a OPEC cuts,” Botterill said.
“And, of course, there is still a small bit of a regard on either that’s going to get by all of a oversupply that’s in a system.”
Natural gas prices stronger
Natural gas prices were bad in initial half of 2016 but strengthened in a final half of a year. Recent cold continue suggests they might stay clever into early 2017, Botterill said.
Still, he noted, a cost of bringing on some-more healthy gas prolongation in both Canada and a U.S. stays “quite cheap,” so a remarkable and sustained price spike is unlikely.
“It’s tough to see how we’re going to get really high, towering prices,” he said.
Deloitte expects Henry Hub prices to normal around $3.25 per thousand cubic feet in 2017, that Botterill pronounced is “significantly stronger” than a year ago.
Overall, he said, a opinion for a oil and gas zone is improving.
“There’s a lot of event in a zone now, and there’s some confidence in producers, and we consider we’re going to see a most improved 2017 than … final year.”
Article source: http://www.cbc.ca/news/canada/calgary/deloitte-oil-forecast-2017-55-dollars-per-barrel-1.3919825?cmp=rss